Amazon Prime Video has announced sweeping layoffs, affecting “several hundred roles” across Prime Video, and Amazon MGM Studios. This decision comes in the aftermath of the costly and ill-fated first season of “The Lord of the Rings: The Rings of Power.” Let’s delve into the details surrounding this major shake-up within the streaming giant.
Senior Vice President Mike Hopkins delivered the unsettling news to employees in an email, revealing the elimination of roles across Prime Video, and Amazon MGM Studios. The move is an attempt to recover from the aftermath of the extravagant but disastrous first season of “The Lord of the Rings: The Rings of Power.”
RELATED: Alan Ritchson Brings High-T Action To Prime Video In ‘Reacher’ Explosive Second Season
Hopkins acknowledged the difficulty of the decision, stating, “It is hard to say goodbye to talented Amazonians who’ve made meaningful contributions on behalf of our customers, team, and business.” The affected employees will receive packages that include a separation payment, transitional benefits, and external job placement support to ease the transition.
The full internal Memo from Amazon:
Team,
We’ve taken significant steps towards our long-term vision of making Prime Video the first-choice entertainment destination for customers worldwide, and I’m proud of everything we’ve accomplished as a team to date. Our investments in programming, marketing, and technology have enabled us to expand our selection of blockbuster movies, hit tv series, live sports, the world’s largest TVOD catalog along with over 650 partner Channels worldwide, and AVOD services including Freevee – all available in a single destination, delighting customers around the globe. And, through our acquisition of MGM, we’ve increased our investments in theatrical films and driven growth in MGM+ and our licensing and third-party production businesses.
Yet, at the same time, our industry continues to evolve quickly and it’s important that we prioritize our investments for the long-term success of our business, while relentlessly focusing on what we know matters most to our customers. Throughout the past year, we’ve looked at nearly every aspect of our business with an eye towards improving our ability to deliver even more breakthrough movies, TV shows, and live sports in a personalized, easy to use entertainment experience for our global customers. As a result, we’ve identified opportunities to reduce or discontinue investments in certain areas while increasing our investment and focus on content and product initiatives that deliver the most impact. As a result of these decisions, we will be eliminating several hundred roles across the Prime Video and Amazon MGM Studios organization.
Today, we will begin to reach out to colleagues who are impacted by these role reductions. Notifications will be sent out shortly, and we expect all notifications in the Americas to be completed this morning (Pacific time), and most other regions by the end of the week. We are following local processes, which may include time for consultation with employee representative bodies, possibly resulting in longer timelines to communicate in some countries.
This is a difficult decision to make and one that my leadership team and I do not take lightly. It is hard to say goodbye to talented Amazonians who’ve made meaningful contributions on behalf of our customers, team and business. Thank you for your dedication and work. To help with the transition, we are providing packages that include a separation payment, transitional benefits as applicable by country, and external job placement support.
Our prioritization of initiatives that we know will move the needle, along with our continued investments in programming, marketing and product, positions our business for an even stronger future. Prime Video is one of the most popular benefits for Prime members, and one of most widely used entertainment destinations in the world. I’m proud of the work you do every day on behalf of our customers, and I’m looking forward to continuing to build our business for the future.
-Mike
According to That Park Place, Amazon’s layoffs follow the revelation that “The Lord of the Rings: The Rings of Power” incurred a staggering budget of $1 billion and the show ate up a lot of Prime Video’s budget. However, the series failed to recoup its investment, with reports indicating that only 37% of viewers completed the series. This disappointing completion rate raises questions about the show’s appeal and the financial viability of such colossal productions.
RELATED: Prime Video’s Lord Of The Rings: Rings Of Power Rumored To Race Replace Sauron
Despite its monumental budget, “The Rings of Power” struggled to maintain viewership momentum. Nielsen reported a decline from the debut’s 1.253 billion minutes viewed in North America, with subsequent weeks witnessing a steady drop. The season finale provided a temporary boost, but post-finale viewership plummeted, raising concerns about the show’s sustained engagement.
Critically, the series faced harsh reviews, garnering an abysmal Rotten Tomatoes score of 38% from audiences and a modest IMDb rating of 7.0. The lackluster critical reception further fueled doubts about the show’s ability to resonate with audiences.
These layoffs align with Amazon’s broader initiative to streamline its operations. The company, under CEO Andy Jassy, has been scrutinizing the costs of various shows, signaling a strategic reevaluation of its content investments. Simultaneously, Amazon-owned Twitch announced a significant workforce reduction, cutting 500 jobs, reflecting an effort to align its organization with the current scale of its business.
The layoffs at Amazon Prime Video underscore the challenges faced by streaming platforms in delivering content that resonates with audiences. The fallout from “The Lord of the Rings: The Rings of Power” serves as a cautionary tale, prompting industry observers to question the sustainability of exorbitant budgets for original series. As Amazon navigates this tumultuous period, the fate of future productions and the streaming landscape remains uncertain.
What do you think of Amazon laying off people at Prime Video and Twitch? Leave a comment and let us know.
NEXT: Wholesome ‘Dungeon Meshi’ Anime Promotion Enrages UNHINGED Users On X
Get Afrohobbits, go broke
More like The Rings of POOwer amirite? Sorry, that’s all this shit deserves. lol
Good. Well deserved.